Second Circuit Overturns Vermont Data-mining Law

On November 23, 2010, the United States Court of Appeals for the Second Circuit held that a Vermont law, which prohibited the sale of prescriber-identifiable (PI) data for certain marketing purposes, violated the First Amendment of the US Constitution. In a 2-1 decision, the Second Circuit ruled in favor of three data-mining companies that contested the law, as well as the Pharmaceutical Research and Manufacturers of America, which represented the interests of the primary customers of the data-mining companies in the suit. The Court said the state failed to show that its substantial interest in protecting public health and reducing healthcare costs could not be as well served by a more limited restriction on speech, and as such, it was an unconstitutional restraint on commercial speech.

Click the link below to read the full alert.